A significant week for tech sector earnings continues with CoreWeave (CRWV) reporting its quarterly results after today’s closing bell. The cloud computing company is expected to show an EPS loss of -$0.45 on revenue of $1.54B, while the options market shows a potential expected move of about +/-15.30 (~82 to 113, about 15.6%) for tomorrow’s Feb. 27 expiration.

CoreWeave’s main business is essentially renting out computer processing power. It has massive supercomputer clusters that other companies can use to train AI agents or do other hardware-intensive tasks, rather than going through the extremely costly and difficult process of building and maintaining their own heavy-duty computing setups.

The unprecedented demand for all things AI seems to be favorable for a company like CoreWeave, but the recent situation has been somewhat chaotic for traders as question marks loom about whether the boom is overblown. CoreWeave has aggressively built out its data centers and computer clusters, and currently has nearly $19B in debt/lease obligations. However, it also has a contract backlog of more than $55B that includes major companies like Microsoft (MSFT) and Meta Platforms (META)

The technical picture for CoreWeave is an echo of many other charts in the tech sector, and really across the broader market as well; consolidation. CoreWeave’s price has trended downward since its all-time highs of 187 on Jun. 20, but it also formed a double-bottom low near 65 in November and December. From there, price has climbed upward in the short term and created a symmetrical triangle-type shape with boundaries at roughly 79 and 100. Other notable horizontal price levels to the upside include old lows/relative highs near 115 and similar activity around 127, while supportive areas could include relative lows near 84 and 74.

CoreWeave’s price sits on the edge of the biggest volume node during its trading history between about 86 to 98, with the Volume Profile Point of Control (area of heaviest trading activity) coming in at 92.27. This study shows relatively light trading above this node until around 120, so traders could see fast-moving prices in the event of a breakout. Volume thins out notably below 72, with another smaller node near 40.

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